South Korea: U.S. Trade Deal Framework Possible by August, Farm Access in Negotiations

By Hyunjoo Jin

SEOUL () - South Korea's chief trade representative stated on Monday that reaching an agreement in principle on a trade deal with the U.S. could potentially happen before an August 1 deadline, according to reports from domestic media. The official also indicated that Seoul might consider expanding market access for agricultural products.

Trade Minister Yeo Han-koo, who recently engaged in top-tier discussions with American authorities, stated that South Korea aims to prevent what it calls "unjust" U.S. duties on critical industries vital to its manufacturing strength, which could jeopardize industrial collaboration with its primary defense partner and commercial associate, according to news outlets.

It may be feasible to achieve a general agreement during the U.S. tariff discussions, after which we can spend more time refining the details," reported Newsis, quoting Yeo speaking to local journalists. "Twenty days aren’t sufficient to develop a comprehensive treaty covering all specifics.

"We must exercise careful decision-making regarding the agricultural and animal husbandry industries," Yeo reportedly stated, noting that certain "delicate" fields might require ongoing support while others could be incorporated into the broader structure.

"There has been 'significant advancement' in discussions with American authorities regarding collaboration in critical manufacturing industries during the trade negotiations," Yeo reportedly stated, although Washington must reduce sector-specific taxes on vehicles and steel.

On Sunday in Maryland, U.S. President Donald Trump said to journalists, "South Korea is eager to reach an agreement at this moment," without explaining what would solidify the deal or guessing when talks might be finalized.

South Korea is racing to finalize a trade agreement in an effort to prevent a 25% tariff imposed by Trump on its goods, which will take effect on August 1, following delayed talks due to the recent election of a new president this past month.

President Lee Jae-myung assumed power on June 4 after his predecessor, Yoon Suk Yeol, was removed due to an unsuccessful coup attempt. The six months of political instability led Seoul to first concentrate on technical negotiations regarding Trump's requests.

Senior South Korean representatives met with U.S. officials in Washington following Trump's declaration, aiming to discuss potential reductions or waivers for import taxes on steel and automobiles.

A high-ranking South Korean trade representative mentioned at the beginning of this month that Washington has demonstrated openness to granting exceptions for specific tariff categories, similar to what occurred during negotiations with the UK, provided South Korea presents a well-defined proposal aimed at decreasing the trade deficit.

South Korea achieved a historic trade surplus of $55.6 billion against the U.S. in 2024, marking a 25% increase compared to 2023, as reported by the Korea Customs Service, driven by higher automobile exports.

According to economists, South Korea has nearly zero effective tariff rates due to a free trade agreement initially established in 2007 and updated in 2018 during Trump's initial presidency.

(Reported by Hyujoo Jin, Written by Jack Kim, additional reports by Trevor Hunnicutt in Washington; Edited by Ed Davies)

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